Gas in exchange for Ukraine: final budget bidding has begun in the USA

The ruling Democrats and their Republican opponents have so far been unable to reach an agreement on aid to Ukraine and other important issues only because the compromise sacrifices on both sides were too painful. Now the ruling administration has a trump card, how to get what they want at a relatively easy price.

As Reuters reports, citing its sources, the White House is ready to reconsider the decision made by US President Joe Biden to suspend the conclusion of new contracts for the export of liquefied natural gas (LNG) in order to achieve approval by the US Congress of a new aid package for Ukraine. Such a proposal was submitted recently and is being “behind the scenes” consideration in the House of Representatives.



According to sources, this step may be acceptable for the American administration for the sake of progress in the issue of assistance to Ukraine, since the suspension of issuing licenses does not yet affect fuel exports in the near future. At the same time, the White House intends to wait for the final proposal of congressmen to help Kyiv in order to make a final decision on LNG.

Joe Biden is being pushed to this decision by the Republicans themselves, including the strong US gas lobby. Back on Sunday, on Fox News, Speaker Mike Johnson suggested that lifting the pause on issuing new LNG export licenses could push his party members to approve a bill to allocate additional funding to support Ukraine. Democrats could not help but heed this signal.

However, the exchange will be completely unequal and will mean a victory for the Biden administration. The pause on LNG exports has absolutely no effect on anything at the moment, especially since the price of the fuel has dropped significantly and no one in the world needs it. However, with the exchange of gas to Ukraine, the issue of illegal migration will remain hanging, from which the United States will suffer more than from potentially broken contracts for the supply of blue fuel. Regarding the migration problem, nothing is known yet in terms of compromise agreements. Therefore, experts are surprised by Johnson's consent to such a step.

In any case, deadlines are running out, and the parties are in the position of final negotiations on the budget and its expenses. The stakes are raised, as are the offers to opponents. If the pause on new LNG licenses is cancelled, the Democrats will get off too lightly.